What breathing space debt protection stops and what it does not
Once the protection starts, creditors with qualifying debts must not add interest, fees or charges, must not contact you to demand payment and must not take enforcement steps such as instructing enforcement agents, starting court action or seeking possession based on those debts. Creditors are notified through an official register, so you do not need to write to each one yourself.
What it does not do is cancel balances or replace a debt solution. Contractual payments do not disappear: you are still expected to pay what you can, and ongoing costs such as current rent, mortgage instalments and council tax for the period must be kept up. Failing to pay those continuing liabilities can lead the adviser to end the protection early.
Debts outside the protection
Several obligations cannot be included in the statutory debt moratorium. Secured debts such as mortgages and hire purchase are covered only for their arrears, not the ongoing payments. Magistrates court fines, child maintenance, student loans, social fund loans, debts arising from fraud and some benefit advances are excluded altogether, as are debts taken on after the protection begins. Check each balance with the adviser.
Who qualifies for standard breathing space
The standard route lasts up to 60 days and is open to people who live in England or Wales, have a debt problem and cannot currently repay what they owe. You must not already have a debt relief order, an individual voluntary arrangement or an interim order, must not be an undischarged bankrupt and must not be in another protection period.
Use is limited to once in any twelve-month period for the standard route, so timing matters. Applying when court action or bailiff visits are imminent gives the greatest benefit, but leaving it until the last moment reduces the time an adviser has to prepare. Telling the adviser about every pending deadline helps them judge the right moment.
Mental health crisis breathing space and its separate rules
People receiving crisis treatment can access mental health crisis breathing space, a stronger version. It lasts for the whole duration of the crisis treatment plus 30 days, has no annual limit and does not require prior debt advice. Crisis treatment includes being detained under the Mental Health Act, being taken to a place of safety by police or receiving intensive care from a crisis team.
An Approved Mental Health Professional, usually a social worker or specialist nurse, must sign evidence confirming the treatment; general practitioners and psychiatrists cannot provide that confirmation. A carer, care coordinator, advocate or someone with power of attorney may apply on the person's behalf, which matters when the individual is too unwell to speak to a debt adviser.
How to apply through a debt adviser
Nobody can apply for breathing space debt protection directly to the government. An authorised debt adviser, or a local authority that offers debt advice, assesses your situation and, if the protection suits you, enters your details on the official register. Free charities do this without charge; be cautious of any firm that asks for a fee to set up something that is free elsewhere.
The adviser will ask for creditor names, account references, approximate balances and your income and spending. Include all qualifying debts, as forgotten creditors are not protected. You receive confirmation of the start date and the list of debts covered, and creditors receive notice at the same time. Keep the paperwork, because some collection agents may need reminding.
The midway review
Partway through the standard period, the adviser checks that you are still eligible, that ongoing bills are being paid and that the protection remains appropriate. Respond to their contact promptly; an unanswered review is one of the reasons protection can be cancelled. Use the review to share any new letters or changes in income since the start.
Using breathing space debt protection to prepare a lasting solution
The weeks of breathing space debt protection should be spent gathering statements, completing a full budget and comparing options with the adviser. Depending on the figures, the next step may be informal reduced payments, a debt management plan, a debt relief order, an IVA or bankruptcy. Each requires paperwork that is easier to assemble while creditors are not calling.
Use the calm period to claim any benefits you are missing, reduce essential bills where possible and resolve priority arrears. Do not take on new credit while protected: fresh borrowing is excluded from the scheme, adds pressure when the protection ends and may count against you if a formal solution is later considered by an insolvency practitioner or official.
What happens when breathing space debt protection ends
When standard breathing space finishes, or thirty days after crisis treatment ends, interest and charges can resume and creditors may restart contact and enforcement. Interest frozen during the period is not added back retrospectively. Ideally a new arrangement is already agreed, so that creditors move straight from the protection into a payment plan or formal procedure.
If no plan is in place, contact creditors immediately with an offer based on your budget and keep the adviser involved. A creditor may also ask the adviser to review or cancel the protection during the period if it believes the conditions are not met, and in limited circumstances can ask a court for permission to take action despite the scheme.
Scotland and Northern Ireland
The scheme described here applies only in England and Wales. Scotland has its own statutory moratorium, which works differently, and Northern Ireland has its own arrangements. Residents outside England and Wales should speak to a local advice service about the protections available where they live rather than relying on the rules summarised above.
